P&G’s latest earnings showed the company’s first quarterly sales decrease in five years, but the company aims to return to its “balanced growth formula.”
Algorithm Categorization
It is important for Procter & Gamble to maintain a healthy growth rate across all its businesses, so the company is focusing on increasing marketing “productivity” while also seeking to increase marketing efficiency to increase profit margins.
Nappy brand Pampers, which has achieved improved productivity by more successfully addressing the consumers it wants to communicate to, was singled out by CEO Jon Moeller as an example of marketing effectiveness driving increased production.
To improve the effectiveness of its marketing, P&G has devised an algorithm to categorize families based on their child’s age and developmental stage.
It has also improved its digital skills, allowing it to reduce its media budget by half while expanding its reach by twenty per cent and its brand recognition by twenty-six per cent.
